Auto parts distributor Genuine Parts announced Tuesday that it is lowering its full-year profit expectations, as climbing costs and a more difficult environment for consumers continue to put pressure on the business.
Ongoing geopolitical tensions in the Middle East have added to the headwinds facing the automotive industry, driving up fuel prices and dampening consumer spending habits.
Here is a breakdown of the company’s latest financial results:
Genuine Parts reduced its 2026 earnings forecast to a range of $5.90 to $6.40 per share, down from its previous projection of $6.10 to $6.60 per share. However, the company stood by its full-year adjusted profit forecast of $7.50 to $8 per share, and kept its 2026 sales growth outlook unchanged at 3% to 5.5%.
For the second quarter, the company posted an adjusted profit of $2.15 per share, coming in ahead of the analyst consensus estimate of $2.08 per share, according to data from LSEG.
On the sales front, Genuine Parts’ North America Automotive segment brought in $2.5 billion, a 3.8% increase from the same period last year. Its International Automotive segment saw even stronger growth, with sales climbing 8.2% to $1.6 billion year over year.
Overall quarterly revenue rose 6% to $6.54 billion, topping the analyst average estimate of $6.43 billion.
Back in February, Genuine Parts revealed a strategy to break apart its automotive and industrial divisions, arguing that the two businesses would be worth more operating independently. That plan has the backing of activist investor Elliott Investment Management, which has argued that separating the two units would unlock greater value for shareholders.
CEO Will Stengel confirmed the timeline is on schedule, stating: “We remain on track to complete our planned separation in the first quarter of 2027.”
